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OBSERVATIONS <br />PERMIT #: M -1987 -164 <br />INSPECTOR'S INITIALS: DMC <br />INSPECTION DATE: July 13, 2011. <br />This inspection was conducted as part of the Division of Reclamation, Mining and Safety's (Division) normal <br />monitoring program. Larry Johnson, representing the Operator, was present during this inspection. <br />Photographs are included at the end of this report in order to illustrate some of the conditions observed during <br />this inspection. <br />The Camilletti Pit is located approximately 2 miles east of Hayden and accessed from CR 51A. The site is a <br />112c operation that includes a total of 35 permitted acres. The Division currently holds a financial warranty <br />amount of $165,162.00 for this site. The Division will review the reclamation costs for this site in order to <br />ensure the financial warranty reflects the actual current cost of fulfilling the requirements of the Reclamation <br />Plan. The Operator will be notified if the Division determines that the current financial warranty amount is <br />insufficient. <br />Adequate mine identification signage was noted at the entrance to the site in accordance with Rule 3.1.12(1). <br />The affected area was marked by markers that were clearly visible and adequate to delineate the affected area <br />boundary. <br />The entire east half of the permit area has been mined out, and mining is progressing westerly into the AM1 <br />area. The pit highwalls were approximately 35 feet high, with approximately 10 feet of overburden overlying <br />the sand and gravel resource. Ground water was not observed in the bottom of the pit. Except for the active <br />mining area, where the highwall is near - vertical, the perimeter slopes at the site appeared to have been graded to <br />approximately 1.5 -2H:1 V and seeded. Upon final reclamation, all slopes are to be no steeper than 311:1V. <br />An asphalt plant was located in the eastern end of the pit. It was noted during the file review following this <br />inspection that the Financial Warranty amount currently held by the Division does not include costs for removal <br />of the plant. <br />All mining related equipment and materials observed at the site appeared to be stored in an orderly manner. <br />This was a notably clean operation. <br />No other problems or violations were noted during this inspection. <br />Responses to this inspection report should be directed to Dustin Czapla at the Division of Reclamation, Mining <br />and Safety, Grand Junction Field Office, 101 South 3rd Street, Room 301, Grand Junction, Colorado 81501, <br />phone number (970) 243 -6299. <br />Page 2 of 3 <br />